United Kingdom

Details

  • Service: Advisory, Transactions & Restructuring
  • Industry: Financial Services
  • Type: Business and industry issue
  • Date: 16/12/2011

MF Global Special Administrators’ proposals and initial creditors meeting 

A meeting of creditors and clients (pursuant to paragraph 51 of Schedule B1 of the Insolvency Act 1986) of MF Global UK Limited will be held at the Barbican Centre, Silk Street, London, EC2Y 8DS on 9 January 2012 at 11:00am, to consider the Joint Special Administrators’ Proposals and to consider establishing a creditors’ committee comprising representatives of creditors and clients.

 

The notice of the meeting can be found here:

 

 

In view of the large number of creditors and clients, in accordance with Rule 297 of The Investment Bank Special Administration (England and Wales) Rules 2011, certain statutory documents are being made available electronically. This includes the Special Administrators’ proposals.

 

The link to the Special Administrators’ proposals can be found here:

 

 

If you are unable to download the PDF file, you may need to update your Adobe software to the latest version. Please go to the Adobe website http://get.adobe.com/uk/reader/.


Hard copies of the Special Administrators’ proposals are available on request and free of charge. If you wish to receive hard copies of the proposals, please:

 

a) telephone 020 3321 4195; or
b) email mfglobalclaims@kpmg.co.uk; or
c) write to MF Global Claims, 5 Churchill Place, Canary Wharf, London, E14 5HU.


Creditors’ and clients’ respective claim and proxy forms together with guidance notes can be found here:

 

Meeting of clients and creditors on 9 January 2012

It is likely that the meeting of clients and creditors on 9 January 2012 will be well attended and we recommend that attendees arrive at the venue in plenty of time to complete the registration process and take their seats. Registration will commence at 9.30am. Due to the restrictions at the Barbican Centre, each creditor and client should limit the number of attendees at the meeting to a maximum of three people. 


We would suggest that attendees enter the Barbican Centre from its main Silk Street entrance. Stewards will be in attendance to direct attendees to the registration desks.

 

 

The meeting format will consist of the Special Administrators presenting their proposals and updating clients and creditors on progress in the special administration. There will then be an opportunity for clients and creditors to ask questions in respect of the proposals and the conduct of the special administration. Clients and creditors who have not already voted will then be asked to vote on the Special administrators’ proposals and the establishment of a creditors committee (likely to comprise three representatives appointed by the "clients" and two representatives appointed by the "creditors").

 

The Special Administrators will endeavour to be in a position to announce the outcome of the votes at the end of the meeting although, depending on the number of attendees, it may be necessary to announce the result after the meeting. The result of the votes will be made available on this website.

 

You are reminded that if you would like to vote at the meeting, whether in person or by proxy, you must provide details of your claim to the Special Administrators by 12 noon on 6 January 2012. Please note that the term "client" refers to a claimant who thinks he/she has an interest in in the segregated client money pool under the FSA's client money regulations (CASS 7) or a claimant with a proprietary interest in a client asset or assets.

 

A "creditor" may well have been a client of the firm in the ordinary sense of the word, but if he does not have a client money or client asset claim under the relevant FSA CASS rules, then he is regarded as a "creditor" for these purposes, with a claim against the unsecured estate. Accordingly, you may have claims against the company as both a creditor or a client. If this is the case and you wish to vote at the meeting, you must fill in both forms. We will be completing a verification process as and when claims forms are received in order to ensure that clients have completed the correct form(s).

Outcome of the initial meeting of creditors and clients held on 9 January 2012

The initial meeting of creditors and clients was held on 9 January 2012. At the meeting the joint Special Administrators presented their proposals to creditors and clients. A copy of the presentation slides can be found here:
 

 

The resolution to approve the Special Administrators’ proposals was passed by both creditors and clients. The final vote percentages were:

 

  Client  Creditor
 For 89.74%  88.81% 
 Against 8.51%  10.17% 
 Abstain 1.75%  1.02% 

 

Creditors and clients elected a creditors’ committee comprising three clients and two creditors. Those elected to the committee are as follows:

 

 Creditor-elected member Votes received £m Client-elected member Votes received £m
BB Energy (Gulf) DMCC  52.78 MF Global Inc 572.37
Unipec Singapore Pte. Limited 31.78 Peabody Coal Trade International Limited 116.08
    KIT Finance Europe AS  44.52

 

The creditor candidate receiving the third highest vote received £20m of votes and the client candidate receiving the fourth highest vote received £16m votes. 

 

The special administrators will shortly be in contact with the successful candidates to complete the formalities of establishing the committee and then calling the first meeting.  The committee will only be formed when the special administrators issue a certificate of due constitution.  Details of how to contact the representatives of the members of the creditors committee will then be published.

 

The Chairman's report on the Initial Meeting can be found here:

 

Classification of your claim at the initial meeting of creditors and clients

If, for the purpose of the Initial Meeting, your claim was admitted for voting purposes, but for a different 'class' than you had expected, please note that the reclassification does not prejudice or confirm your final classification for claims agreement or distribution purposes.

 

Due to the high volume of claims received between 15 December 2011 (being the date when notice of the Initial Meeting was given and the claim forms were uploaded to the website) and 6 January 2012 (being the last date for submission of those claim forms for voting purposes) the Special Administrators and their team were unable to undertake a detailed review of each claimants claim. As a basis for establishing an individual's vote value and classification for voting purposes at the Initial Meeting, the Special Administrators relied on the company's systems records.

 

The Special Administrators and their team are now progressing a detailed reconciliation exercise of each claimant's claim for distribution purposes. In order to assist the Special Administrators and their team in this exercise, you are requested (if you have not done so already) to submit any supporting evidence to substantiate why you think your claim should be classified as you assert. Supporting evidence could include, for example, your account opening documentation and communication you had with the company (contracts, emails, etc.) in respect of the type of client you are or any communication which indicates how your account(s) were being held (for example, on a segregated or a non-segregated basis).

 

The Special Administration team are continuing to review all claims received and Company information in order to finalise each parties’ classification and will confirm this with you at a later date. In the event that it is not possible to do so before any interim distribution is made, please be advised that your claim will not be prejudiced. The Special Administrators will have calculated sufficient reserves so ensure that you will be able to take part in any interim distribution once the status of your claim has been confirmed.

While every reasonable effort is made to ensure that the information provided on the pages of this website concerning MF Global UK Limited (in Special Administration) and its Joint Special Administrators, MF Global Overseas Limited (in Administration), MF Global UK Services Limited (in Administration) and MF Global Finance Europe Limited (in Administration) and their respective administrators  (together the "MFG UK Estate") is accurate, no guarantees for the currency or accuracy of the website or information therein are made. The pages of this website concerning the MFG UK Estate and related material (or third party information), is provided ‘as is’. It is provided without any representation or endorsement made and without warranty of any kind, whether express or implied.
 
Please be aware that the MFG UK Estate and KPMG LLP, hereby exclude all liability for any claim, loss, demands or damages of any kind whatsoever (whether such claims, loss, demands or damages were foreseeable, known or otherwise) arising out of or in connection with the use of this website or the information, content or materials included on this website, including without limitation, indirect or consequential loss or damage, loss of actual or anticipated profits, loss of revenue, loss of business, loss of opportunity, loss of anticipated savings, loss of goodwill or loss of reputation. Nothing in this disclaimer excludes or limits the Joint Special Administrators', the Joint Administrators' or MFG UK Estate's liability for fraud or fraudulent misrepresentation or any liability which may not be limited or excluded by law.
 
The use of this website and any dispute or claim arising out of or in connection with this website (including non-contractual disputes or claims) is governed by English law and you irrevocably submit to the exclusive jurisdiction of the English courts.
 

MF Global special administration

The latest updates from the special administrators of MF Global UK Limited

 

Contact information

For all non-press enquiries on MF Global UK Limited please email the following:

 

Claim queries 

mfglobalclaims@kpmg.co.uk